State Board of Education approves revised charter school application

Published: Thursday, July 10, 2014 at 8:38 p.m.

Last Modified: Thursday, July 10, 2014 at 8:38 p.m.

The State Board of Education approved on Thursday a revised charter school application that makes some education management company financial information more public.

The original proposal recommended by the state Charter School Advisory Board added the companies' financial information to the application process but included a provision that would have shielded it from the public.

Some members of the State Board of Education were concerned the provision was motivated by financial gain.

"What was the reasoning to not want to disclose to the public the financial statements and audits?" asked Greg Alcorn, chairman of the business, finance and advocacy committee.

After discussion, the board unanimously voted for the updated application, but without the language that would have protected private educational management organizations from publicly disclosing financial statements or similar documents.

"My concern is there's financial motivation among members of the committee," said Alcorn, referring to the charter advisory board. "Am I seeing that wrong?"

Joel Medley, director of the Office of Charter Schools, said he did not have an answer for Alcorn's question.

The StarNews has filed several public records requests pertaining to financial and other documents from the local Charter Day School Inc. and its education management company, Roger Bacon Academy. Baker Mitchell, who founded Charter Day and the for-profit Roger Bacon, serves on the state advisory board.

School officials released some information June 20, but they withheld the information of 33 employees, including headmasters, assistant headmasters and some lead teachers. Additional outstanding requests surround million of dollars in payments to Roger Bacon and Mitchell's equipment leasing company, Coastal Habitat Conservancy.

Prior to the approved change in the charter application, education management companies' financials were not disclosed.

Advisory board member Steven Walker, a lawyer and a Lt. Gov. Dan Forest appointee, introduced the public shield to the application during a special meeting May 27, He said at the time the management company's information should be transparent to the state during the application process, but not to the public.

On Thursday, Walker said his intention had been to protect information that is already shielded by state law.

"Under the public records act, there are certain items that are considered confidential even though they come into the possession of a state agency," Walker wrote in an email.

Those documents, Walker said, include trade secrets among other financial matters.

Mitchell voted in favor of the amended application after asking Walker for clarification.

"Does that mean a private corporation is going to have to give the (Office of Charter Schools) financial statements?" he asked.

Mitchell's Charter Day School Inc. oversees three charter schools in the Cape Fear Region: Charter Day in Leland, Columbus Charter in Whiteville; and Douglass Academy in Wilmington.

He currently serves as secretary for Charter Day School Inc.'s board of trustees.

A fourth Charter Day School Inc. location, South Brunswick Charter, is slated to open this fall near Southport.

Mitchell's Roger Bacon Academy is paid a 16 percent management fee based on total school revenue, plus additional money in administrative fees and bonuses.

Mitchell did not return multiple requests for comment.

"My interpretation of the SBE's action is that the change was considered necessary to make the advisory board's recommendation align with statutory language," responded Sawyer Batten, spokeswoman for Roger Bacon Academy.

Walker said handing over financial statements is just one option to show the organization is in good financial standing. He believes for-profit organizations will opt for providing less sensitive information.

Walker said management companies should be required to prove they're in good financial standing before they can work with any charter schools.

"The rationale of having some supporting documentation that the EMO has a sound financial standing is that many schools partnering with an EMO fashion their budget in a way that requires a large infusion of cash from the EMO to get the facilities, technology, or other items ready for the school year," Walker said.

Alcorn said the proposed change in the charter school application left him "questioning the integrity of the process."

He said the betterment of student education in the state should be the forefront for all those associated with schools.

The proposed change indicated to him that "some interests beyond the students" may have been considered among members of the advisory board.

<p>The State Board of Education approved on Thursday a revised charter school application that makes some education management company financial information more public.</p><p>The original proposal recommended by the state Charter School Advisory Board added the companies' financial information to the application process but included a provision that would have shielded it from the public.</p><p>Some members of the State Board of Education were concerned the provision was motivated by financial gain.</p><p>"What was the reasoning to not want to disclose to the public the financial statements and audits?" asked Greg Alcorn, chairman of the business, finance and advocacy committee. </p><p>After discussion, the board unanimously voted for the updated application, but without the language that would have protected private educational management organizations from publicly disclosing financial statements or similar documents.</p><p>"My concern is there's financial motivation among members of the committee," said Alcorn, referring to the charter advisory board. "Am I seeing that wrong?"</p><p>Joel Medley, director of the Office of Charter Schools, said he did not have an answer for Alcorn's question.</p><p>The StarNews has filed several public records requests pertaining to financial and other documents from the local Charter Day School Inc. and its education management company, Roger Bacon Academy. Baker Mitchell, who founded Charter Day and the for-profit Roger Bacon, serves on the state advisory board. </p><p>School officials released some information June 20, but they withheld the information of 33 employees, including headmasters, assistant headmasters and some lead teachers. Additional outstanding requests surround million of dollars in payments to Roger Bacon and Mitchell's equipment leasing company, Coastal Habitat Conservancy. </p><p>Prior to the approved change in the charter application, education management companies' financials were not disclosed.</p><p>Advisory board member Steven Walker, a lawyer and a Lt. Gov. Dan Forest appointee, introduced the public shield to the application during a special meeting May 27, He said at the time the management company's information should be transparent to the state during the application process, but not to the public.</p><p>On Thursday, Walker said his intention had been to protect information that is already shielded by state law.</p><p>"Under the public records act, there are certain items that are considered confidential even though they come into the possession of a state agency," Walker wrote in an email.</p><p>Those documents, Walker said, include trade secrets among other financial matters.</p><p>Mitchell voted in favor of the amended application after asking Walker for clarification.</p><p>"Does that mean a private corporation is going to have to give the (Office of Charter Schools) financial statements?" he asked.</p><p>Mitchell's Charter Day School Inc. oversees three charter schools in the Cape Fear Region: Charter Day in <a href="http://www.starnewsonline.com/section/topic9971"><b>Leland</b></a>, Columbus Charter in Whiteville; and Douglass Academy in Wilmington.</p><p>He currently serves as secretary for Charter Day School Inc.'s board of trustees.</p><p>A fourth Charter Day School Inc. location, South Brunswick Charter, is slated to open this fall near Southport.</p><p>Mitchell's Roger Bacon Academy is paid a 16 percent management fee based on total school revenue, plus additional money in administrative fees and bonuses.</p><p>Mitchell did not return multiple requests for comment.</p><p>"My interpretation of the SBE's action is that the change was considered necessary to make the advisory board's recommendation align with statutory language," responded Sawyer Batten, spokeswoman for Roger Bacon Academy. </p><p>Walker said handing over financial statements is just one option to show the organization is in good financial standing. He believes for-profit organizations will opt for providing less sensitive information.</p><p>Other approved documents include credit rating reports, bank letters or Dun & Bradstreet reports.</p><p>Walker said management companies should be required to prove they're in good financial standing before they can work with any charter schools.</p><p>"The rationale of having some supporting documentation that the EMO has a sound financial standing is that many schools partnering with an EMO fashion their budget in a way that requires a large infusion of cash from the EMO to get the facilities, technology, or other items ready for the school year," Walker said.</p><p>Alcorn said the proposed change in the charter school application left him "questioning the integrity of the process."</p><p>He said the betterment of student education in the state should be the forefront for all those associated with schools.</p><p>The proposed change indicated to him that "some interests beyond the students" may have been considered among members of the advisory board.</p><p>Caitlin Dineen: 343-2339</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @CaitlinDineen</p>